At the start of 2022, the longest 0% deals are back up to over 30 months, but there aren't many of them. 2017 was the high water point for 0% balance transfers - you could get deals for 43 months. Then for a couple of years, the deals got gradually shorter and the fees edged up. With the pandemic, most deals disappeared entirely and the few there were much shorter, a maximum of 24 … [Read more...]
Articles about "Snowballing" - how to clear debt fast
"Snowballing" is the name given to method of paying off your debts as fast as possible, by paying the minimum to all except one and overpaying that one by as much as possible every month. You will also end up with a great credit record!
To find how this works, how to choose which debt to make your top priority and ideas about how you can snowball most effectively, see Debt Camel's Guide to Snowballing.
This page is an archive of all articles about Snowballing in date order.
Lots of people want to consolidate all their debts into one loan. Making just one monthly payment sounds simpler. And the interest could be lower - a big improvement, surely? Consolidating can sometimes be a good idea, but you have to be careful to get it right. Most debt advisors have seen this go badly wrong for too many clients... So if you want to get this right, here are the five big … [Read more...]
If you are paying high interest on credit cards or other debts should you use every penny possible to reduce your debts? You certainly shouldn't have a lot of savings whilst you are in debt. But there are many good reasons why you should continue to make pension contributions. More than 10 million people save into their pension through auto-enrollment, where employers have to make a … [Read more...]
A few taps on your mobile and that handbag, those kids' clothes or this kitchen gadget is on its way to you. Very convenient with busy lives and little time to go to the shops. Or when the shops are shut because of lockdown! But when money is tight or you want to save for something important, or you are just bored with being at home all the time, it can be just too easy to overspend. … [Read more...]
Loyalty cards encourage you to come back for your next coffee, pizza or supermarket shop. If you are trying to get rid of problem debt, then you need to beware of the temptation to overspend your budget, well that's obvious! But let's look at why companies use reward programs. Exploring the psychology involved reveals three factors which could also help you to get out of debt. 1) Simple … [Read more...]
A lot of personal finance advice starts out with “Everyone needs an emergency fund”. A survey showed that a third of middle-class families couldn’t pay an unexpected bill of £500 without borrowing, so the lack of savings is a very widespread problem. But what if you already have debts that you are paying off? Accumulating an emergency fund will delay clearing the debts … but having a rainy day … [Read more...]
If you have a credit card or catalogue account with a zero balance, should you close it? You may be worried if this would help or harm your credit score. But that isn't the only thing to consider. And what impact will it have on a mortgage application - cr4edit scores aren't the only that matters to a mortgage lender. This decision is important to get right if you are trying to clear your … [Read more...]
Do you only make the minimum payments on your credit cards? If money is tight, you may feel you can't afford more... But do you know that there is a simple alternative that will speed up debt repayments a lot, not harm your credit record and not cost you any more? Read on! How long does it take to clear the balance? Suppose you buy a cot, buggy, car seat and some other baby equipment … [Read more...]
If you are determined to pay off your debts, then you may have heard of "snowballing" - it's the approach where you pay the minimum to all of your debts except one, which you overpay by as much as possible each month. (If you can't afford to pay the minimums to your debts, snowballing isn't for you - look at A simple roadmap of debt solutions to see what your options are.) But which debt should … [Read more...]
A reader asked about the best way to clear debt: "I owe about 12k and my partner a bit more. We are well paid but we can't rely on the bonuses and we want to get a house as soon as possible. What do you suggest? Preferably easy as we both work long hours - please don't tell me to take sandwiches to work!" First well done on taking the decision to do something about your debts. It's pretty easy … [Read more...]